Budget 2024 Updates

Income Tax Changes:

1. Income Tax Slab Modification: A 5% rebate is provided for incomes between ₹3 lakh and ₹7 lakh, expanding the range from the previous ₹3 lakh to ₹6 lakh.

2. Standard Deduction Increase: The standard deduction for taxpayers has been increased from ₹50,000 to ₹75,000, offering additional relief.

3. New Pension Scheme Contribution: Contributions to the New Pension Scheme (NPS) by non-government employees have increased from 10% to 14%.

Capital Gains Tax Adjustments:

1. Short-term Capital Gains Tax: Increased from 15% to 20% for equity investments held for less than 12 months.

2. Long-term Capital Gains Tax: Adjusted from 10% to 12.5% for certain equity assets.

3. Indexation Benefit Removal: The indexation benefit for long-term capital gains has been abolished, affecting tax calculations on assets held over the long term.

Other Tax Revisions:

1. Securities Transaction Tax (STT): Increased rates for options (from 0.0625% to 0.1%) and futures (from 0.0125% to 0.02%) transactions.

2. E-commerce Operators: Reduced TDS rates from 1% to 0.1%, aiming to provide relief to the e-commerce sector.

3. Angel Tax Abolition: Proposed abolition of angel tax for all classes of investors in startups to encourage investment in the startup ecosystem.

Corporate Tax Rate Changes:

1. Foreign Companies: Corporate tax rates for foreign companies reduced from 40% to 35%, aimed at attracting more foreign investment into India.

2. TDS for Partnership Firms: Introduction of a new TDS provision requiring 10% TDS on payments exceeding ₹20,000 to partners of partnership firms.

Conclusion: The Union Budget for 2024 outlines strategic tax reforms aimed at boosting investment, simplifying tax compliance, and fostering economic growth in India. These measures include adjustments to income tax slabs, capital gains taxes, securities transaction taxes, and corporate tax rates, alongside incentives for sectors like e-commerce and startups. The overall aim is to enhance India's economic landscape and attract both domestic and foreign investments

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